#USA #Geneva #DeFi #August #Dragonfly Ventures

August Secures $10 Million in Series A Funding

In a significant boost for the world of decentralized finance (DeFi), August, an innovative on-chain prime brokerage and execution platform, has announced a successful funding round of $10 million in Series A financing. This funding was spearheaded by Dragonfly Ventures, accompanied by contributions from notable investors like SCB Limited, 6th Man Ventures, and Robot Ventures, among others. This strategic investment is set to enhance August’s capabilities within the institutional finance sector and further its mission to bridge the gap between DeFi and traditional finance sectors.

August has quietly amassed an impressive $7 billion in transaction volume across various financial activities, including lending, over-the-counter transactions (OTC), and algorithmic swaps, showcasing the robust interest of institutions in the crypto sphere. The funding will bolster August's on-chain brokerage capabilities, focusing on a portfolio margin system that allows institutional clients to leverage staked assets and yield-bearing positions as collateral for structured products and OTC derivatives.

Operational Insights

Operating seamlessly across over 12 blockchains and supporting more than 250 tokens and 70 protocols, August is well-equipped to unlock liquidity across any liquid asset within the crypto ecosystem. The firm has reported over $400 million in loans originated during the last year, illustrating its substantial impact in the space amidst a backdrop where the confidence in centralized finance (CeFi) has been significantly shaken by various collapses.

Co-founders Aya Kantorovich and Alexandre Elkrief emphasized that the recent funding is part of August’s broader strategy to create a capital-efficient infrastructure for trade execution. The firm aims to maximize both liquidity and capital optimization in an evolving ecosystem where more assets are transitioning on-chain.

August is committed to providing a suite of comprehensive financial tools for institutions, protocols, and trading desks, including functionalities that support smart contract multi-signature accounts, trade execution, borrowing and lending, and management of cross-chain DeFi strategies. Their investments in technology not only address the transactions but also align closely with real-time risk management strategies, as institutions become increasingly cautious in the digital assets space.

Trust Built on Transparency

Reflecting on past upheavals, including the notable failures of large centralized entities in 2022, Kantorovich stressed that a shift has occurred, with more liquidity and transaction volume moving on-chain. This transformation signifies that transparency and meticulous risk management are now prerequisites in the evolving financial landscape. The aim is to set a new standard for trading digital assets, where trust isn't merely assumed but embedded within the infrastructure itself.

Elkrief further commented that by introducing on-chain verifiability to their services, August intends to mitigate hidden risks that have traditionally impacted CeFi operations. Their system assures that credit and counterparty risks can be effectively monitored in real-time, providing peace of mind to their clients.

The Future of Finance is Now

Dragonfly Capital’s Rob Hadick shared insights into the systematic issues that led to failures in past crypto market players, indicating that the root problem lay in obscured risk management rather than a lack of institutional interest. With August’s solutions, institutions can leverage real-time metrics and transparent collateral management systems to protect their investments better.

As August continues its expansion, notable figures from the investment community have expressed excitement over its potential to further transform on-chain capital markets. 6th Man Ventures’ Carl Vogel stated that August offers the agility and composability of DeFi combined with the necessary risk management tools, marking a momentous shift that could redefine the future of finance.

In summary, with its latest funding, August is set to reimagine the landscape of decentralized finance, marrying technological innovation with robust risk management, a response to past failures, and a step toward a more stable future for digital assets. As the firm rolls out its enhanced offerings through the newly launched Upshift platform, it reinforces the notion that the future of finance is not just anticipated; it is here and now.